Supply Chain Management Overview

Why is this Important?

Supply chain management factors are critical to EGCO Group’s operations, particularly in the power sector, which is exposed to disruption risks from extreme weather conditions. Such disruptions may affect the procurement of essential materials and services, increase costs, and impact the continuity of power generation. Integrating Environmental, Social, and Governance (ESG) criteria into the selection and monitoring processes of suppliers and Business partners helps mitigate supply chain risks and supports stable growth of the energy portfolio.

To address these challenges, EGCO Group integrates ESG-based supply chain management into supplier selection, procurement, and monitoring processes. This approach screens suppliers against established standards and aligns with the Supplier Code of Conduct, with particular focus on high-risk and strategic suppliers. The framework enhances operational efficiency, reduces procurement-related risks, and strengthens an end-to-end resilient supply chain from upstream to downstream.

Sustainability Material Topic: Supply Chain Management
Stakeholder Impact on Materiality Topics

Supplier & Business Partner

Management Approach

Supply Chain Management Target

Long Term Target

  • Zero contractor accidents at worksites managed by EGCO Group

  • Supplier satisfaction rating on EGCO Group’s ESG strategies and operations

  • 100% of unique significant suppliers with a climate change plan integrating the roadmap to reach Net Zero by 2050

2025 Target and Performance

  • Zero supplier fatalities

  • 100% of new suppliers have acknowledged the EGCO Group Supplier Code of Conduct

  • 100% of unique significant and high-risk suppliers have undergone sustainability assessment

  • Suppliers satisfied with EGCO Group’s ESG operations

  • 100% of unique significant suppliers have undergone climate change risk assessment

  • Implementing training course for unique significant suppliers with risk in greenhouse gas emissions reduction

Supply Chain Management
[GRI 2-6 (2021)]

EGCO Group has formulated management guidelines for suppliers under the company’s supply chain to minimize the risks associated with electricity generation capabilities.

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Supply Chain Management Strategy

EGCO Group is determined to ensure the sustainable procurement of products and services, which is implemented with operational excellence, transparency, and fairness.

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EGCO Group Supplier Code of Conduct

Supplier Code of Conduct has been developed in compliance with UNCG’s 10 principles as well as the company’s internal standards. This Code of Conduct provides guidelines for suppliers to follow.

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ESG Risk Assessment and Integration of ESG Factors into Supplier Selection

The sustainable assessment standard is integrated into EGCO Group’s supplier selection and screening process to ensure their capabilities to provide raw materials and services that meet the company’s expectations.

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Supplier Audit and Corrective Action

Operational audits and in-depth risk assessments are performed annually on significant suppliers and high-risk suppliers to ensure the compliance with Supplier Code of Conduct, laws, and various measures.

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Supplier Capacity Building

EGCO Group has organized supplier participation activities regularly since 2018.

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Related Documents

Policies, Requirements and Performance

Performance Data

Economic

Updated as of May 2026

The information reported above was prepared in accordance with the Global Reporting Initiative Standards (GRI Standards). It has been audited by an external party and has received limited assurance through the 2025 Annual Report.